The latest data from the pricing templates of the Petroleum Products Pricing Regulatory Agency (PPPRA) has shown that the Federal Government on Thursday commenced the payment of subsidy on kerosene to the tune of N1.17 for every litre of the product consumed across the country, The Punch reports.
An analysis of the template posted on its website on March 17, 2016, which was based on Platts’ average prices, revealed that the expected open market price (true cost) of kerosene at filling stations run by independent/major oil marketers was N84.17 per litre. This is against the official approved retail pump price of N83 per litre at which the outlets are mandated to sell the product.
The PPPRA also stated in its template that the government was making an under recovery of N1.17 on every litre of kerosene consumed in the country; meaning that the commodity is being subsidised to the tune of N1.17 by the government. For stations run by the Nigerian National Petroleum Corporation, kerosene is being subsidised by N0.81 per litre, according to the regulatory agency.
